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What is the most important information obtained from a Markov analysis?
Pure Competition
A market structure characterized by a large number of small firms, a homogeneous product, and very easy entry and exit.
Herfindahl Indexes
Measures of market concentration, calculated by summing the squares of the market shares of all firms within the industry to assess the competitive landscape.
Market Power
The ability of a company or entity to influence or control prices and total market output in an industry.
Four-Firm Concentration Ratio
A metric that measures the total market share of the four largest firms within an industry, used to assess the degree of competition and market concentration.
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